Australia | May 02 2013
By Ashley Jessen, director of LearnCFDs.com and author of CFDs Made Simple
Growth concerns out of China pushed international markets well into negative territory overnight, which helped the bears gather a little momentum to the downside following yesterday’s 25 point drop with the S&P/ASX 200 falling a further 36.18 points or 0.7% to close at 5130 on just over $4 billion of turnover.
Sectors largely failed to gain traction and stay in the black with only the Telecommunications sector managing a positive day, up 0.48%, fuelled largely by Telstra’s booming share price. Utilities were the hardest hit, falling 2.01% with Technology close on its heels at minus 1.86%.
Looking over the charts
Weakness has crept in at the top of the recent range but the good news for the bulls is that the sellers are not winning the battle with the market largely consolidating since Tuesday’s nice new highs. Intraday action saw our market gap up a little and fall away fast till midday and then stay in that range till the close of the session. Support is sitting at the 5100 level and if further profit taking or consolidation continues, we can expect that as the next critical point for this uptrend to hold.
S&P/ASX 200 Gainers and Losers
Mount Gibson Iron ((MGX)) bounced back 5.26% after yesterday’s sell off but still remains a little dicey with the price action continuing to bounce around key support levels for the last month. Atlas Iron ((AGO)) went down a similar path, bouncing 4.71% but the recent sell off has it too sitting on key support levels, which will make investors nervous.
Medusa Mining ((MML)) lost a disappointing 9.48% on double the normal volume and is fast approaching critical support levels around the $2.70 mark, having given up 50% of its value since January 2013. Energy World Corp ((EWC)) failed to move into positive territory, falling 7.94% with the short term prospects not looking great, with key support a mere 1 cent away.
(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
Disclaimer: There is a high degree of risk involved in trading various financial instruments. It is possible to lose significant amounts of money when trading the markets. As your trading decisions are beyond my control, I accept no responsibility for your trading results. Please seek professional financial advice to determine if trading is for you.
While Ashley Jessen attempts to ensure that the information herein is accurate at the date the information was produced, however, Ashley Jessen does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of any of the information provided herein and under no circumstances are they to be considered an offer, solicitation to invest or be construed as giving investment advice.
Technical limitations
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